House prices

[Flyfisher]

We consider ourselves very very lucky and feel very sorry for people trying to get on the housing ladder now.

Absolutely. We stretched ourselves to the limit to buy our first house as soon as we graduated and needed a mortgage of 3.5x our joint salary. Today, the same house and the same graduate jobs would require about 5.5x mortgage. Possibly still affordable though because of the much lower mortgage rates today, but still much higher in real terms. Our first mortgage was at around 12% I seem to recall and 0.5% of that was a 'premium' for the risk of such a high multiple (at that time).

In Cornwall it is basically impossible for locals to do this as there is so many people from london buying second homes.

I'm always a bit dubious about blaming 'incomers' for rising prices in rural areas. I'm not denying the effect, but every purchase requires a seller so, presumably, all the locals that sell must be doing very well out of such sales.

 

[MdB]

In Cornwall it is basically impossible for locals to do this as there is so many people from london buying second homes.

I'm always a bit dubious about blaming 'incomers' for rising prices in rural areas. I'm not denying the effect, but every purchase requires a seller so, presumably, all the locals that sell must be doing very well out of such sales.

Doing very well is not quite the right term. One street I was looking at of old mining houses in a rough part of Cornwall used to have houses that sold for 20k to 30k ten years ago. The owners had mostly all sold up to cash in as those same houses are now worth 150k to 200k. The owners now live in rented or static caravans or have left the county for cheaper places to live.

The average wage here is something like 15k to 25k depending on who you ask. The average house price is now £250k. The average price of a flat is £164k. The cheapest I could find quickly was £75k for a tiny 1 bed flat.

Of course this is based on little information and could well be wrong but it is the perceived feeling down here which is causing quite a bit of anger.

 

[Flyfisher]

The owners had mostly all sold up to cash in as those same houses are now worth 150k to 200k. The owners now live in rented or static caravans or have left the county for cheaper places to live.

I appreciate it's an emotive subject, but the above is exactly what I meant by the locals that sell must be doing very well out of such sales. They've 'cashed in' on the market, leaving it much harder for first-time buyers. There are two parties to every sale.

For the last 10 years or so, we've spent a couple of weeks each year in Cornwall, renting the same house on the sea front in Sennen Cove. During that time, the (local) owners of the house have added quite a few extra properties to their holiday business 'portfolio'. Those houses have been taken out of the residential market, adding even more pressure on house prices. In fact, such practice is even worse than the 'buy-to-let' craze of recent years - at least those properties are rented out to local people. I'm sure that 'Londoners' buying second homes adds to the pressure, and I can understand the emotions aroused, but I'm not convinced it's the whole story by any means.

But not only is Cornwall an expensive place to buy property, it's also an expensive place to holiday. Our two weeks house rental alone will cost almost £1500 this year, for just three of us. Nice business for someone (local!). That amount would buy a very decent holiday abroad - with guaranteed sunshine! And people wonder why budget airlines and foreign holidays are so popular.

 

[MdB]

Selling a house and leaving the area brings down the local price (as there is greater local supply) but otherwise I can't argue.

Sennen is also a lovely place. I can understand why you keep on coming back. I've done a lot of climbing on the cliffs there though not recently.

Its also worth coming down in the winter. Completely different place, especially when the storms come in. I've watched the waves hit the blowing hole in the cliffs shoot up and reach the level of the lookout hut on top of the cliffs 40m or so up. Very spectacular.

 

[Flyfisher]

We went to Sennen for a long weekend last October and you're right about the difference in the sea during stormy weather. I was amazed at how high the spray could reach - not quite up to the lookout hut during our visit, but I can easily imagine it in worse weather. So different to last summer when my son spent almost an hour kayaking alongside two basking sharks in the bay! As you rightly say, a lovely place.

 

[Penners]

Sennen Cove, Porthjoke, Towern Beach, and best of all, St Mawes. Ah - my childhood revisited!

 

[Flyfisher]

Mine too. Just doing my bit to pass it on to my son as well.

 

[chuckey]

We are the first area in the country where ALL new houses and conversions must be bought by "locals". Exactly what is a "local", ten years residency?,20 years?, born here? work here? Its all good news to the locals who were farsighted enough to buy up lots of properties for holiday lets. because they can sell them to "incomers" and their children can get new properties built under the "local only" charter.
When a local councillor who was canvassing me remarked, "see that farm over there, the farmer has just sold a single building plot for £200,000", I replied "didn't he do well". Rather deflated the councillor, who thought it was wrong. As Maggie said you can't buck the market.
If a british "Microsoft" had decided to base its self in Sennen, the property prices would still be sky high but there would be a substantial amount of it occupied by local workers.
Its not the price of property, but the low salaries paid to locals, compared with what the metropolitan erks earn. FWIW there are 32,000 parishes in England, in terms of house prices compared to the average local salary, we are the 23rd worst!
Frank

 

[jocelyn plummer]

Decision made, chain free buyer, not the highest offer, and oddly enough, a second home owner in the area wishing to have our house as the main residence and off load the second home!

 

[DaveBrigg]

This site gives an idea of house price changes in your area since 2000. http://www.home.co.uk/guides/house_prices_by_town.htm

There are other sites which give details of chnges in individual properties. It is still possible to buy a three bed house in Scunthorpe for under £60,000 if anyone fancies a move.

 

[Moo]

Jocelyn - HURRAH !!!!!!!

Now tell us all about your next dream house, please.

 

[Penners]

Excellent! And in today's climate, I reckon you've made the right choice of buyer.

Don't forget to have yourself deconsecrated before you leave.

 

[jocelyn plummer]

:lol: :roll: :wink: !!